Responding to CoffeeZilla Exposing Graham Stephan & YottaBank.

we need to talk about Graham

Stefan all right so here's the Scoop

Graham Stefan a few years back made a

video that he invested into a bank

called yada bank which is actually

advertised as not a bank that's because

much like many other fintech services

it's actually very difficult to get a

banking license or a banking Charter

it's actually called some people try to

do it like Sofi they actually went

through a loophole to get it while that

loophole was available but otherwise it

could take years to actually acquire a

bank or to acquire a banking Charter and

even if you do make a bank uh yourself

you're probably needing about $500

million in capitalization just to get

started so making a bank is really hard

and this is why what a lot of fexs do

now is they try to attract capital and

then make money in different ways so

that could be interest rate Arbitrage

like let's say they're able to borrow uh

from their depository Bank uh uh let's

say 5% and they give you

4.75% as a yield on uh savings quote

unquote that they have with you sorry

we're taking off so it might get a

little noisy here uh but anyway it's

just getting ready to storm so we're

taking off like last second here to be

able to get out of this mess uh thanks

Denver anyway so an easy thing a lot of

fexs do that try to innovate uh so to

speak in the finance space is they

partner with depository Banks and as a

result they're able to offer products or

apps or services that may not otherwise

exist in the case of yata that started

with a sort of Lottery system where the

more you had deposited the more you were

able to earn over time uh and it kind of

devolved a little bit into gambling and

there's one thing that I know about

Graham and this is what I want to talk

about uh and then I'm going to I got to

bring up clear value tax here in a

moment as well

but Graham is not a risk taker Graham is

a very honest person uh we were really

great friends for about four years and

and I know he really wants what's best

for the vast majority of people I don't

think he's a bad person he would never

recommend a knowingly bad product and

quite frankly what's going on with yada

isn't even yada's fault at the moment

and I'll talk about that in a moment and

we'll talk about Solutions and what's

likely to happen all that but I want to

make this very clear even though we've

Grown Apart over the last few years

years and there have been some mistakes

that I made which I apologize over I I

[ __ ] up basically uh but either way uh

I know Graham maybe better than a lot of

people on the Internet or people who are

just like social media friends where

it's like oh yeah you have subscribers

let's do a collab or

whatever my relationship with graham was

always from this friend point of you

where it didn't really matter if we made

videos together or not we actually had a

legitimately good time hanging out

together and the Insight that I learned

about Graham during those times is

social anxiety actually gets to him a

lot so I noticed he hasn't been posting

in a while maybe like the last six days

or so which is a little abnormal usually

it' see some on his second Channel

probably I mean ice coffee hours once a

week they just had Michael sailor which

was a good interview uh and it's been a

little quiet on his main Channel too and

so I'm worried about him uh I think the

pressure that people put

creators uh is quite frankly extreme now

I'm not saying it's unfair it's okay to

put pressure on creaters especially when

mistakes happen for example when the FTX

collapse happened both Graham and I we

were on a podcast together and we at one

point were sponsored by FTX which

obviously is a terrible scar on our

reputations but a lot of people were

sponsored by FTX stadiums were Taylor

Swift signed a contract with FTX her

contract never got started because well

they kind of went bankrupt too soon so

she locked out and instead she's got I

think Capital One sponsoring all of her

events Taylor Swift would have been

spawn Tom Brady these are these are

people that aren't provided financial

statements from uh the these companies

and and nobody ever makes that claim

that oh hey yeah we're vetting these

companies in fact I quite frankly

remember when we talked about FTX our

POV was hey this is a cool app they

they've got a trading view integration

so you could trade through trading view

I thought it was really cool want to be

a part of it you can now obviously it

ended up going bankrupt now people are

going to get their money back out of it

which is incredible now we're going

through the

storm uh but that's a scar on us because

people think oh just because we're

YouTubers we should have some secret

access to information that we don't and

we don't we never said we did but I feel

really bad for the pressure that Graham

is getting on yand now quite frankly

because I know he's such a good person

he provides such good value online I

think people just like to Target him

because he has a bigger subscriber

number and so it's easy to sort of make

fun of oh look how stupid these people

are that's not true it's not

representative of Graham uh I'm not

involved in y but even if I was wouldn't

be representative of me

either we're not running those

businesses it's just the way it is

unfortunately companies some companies

succeed some companies fail now if my

company house hack fails that's on me

but I'm flying around right now looking

at real estate to make sure that doesn't

happen she got a little house Haack flag

here the only company that I can truly

have control over is a company that I

run and what I know about Graham is that

he provides great quality content for

people looking for introductory Finance

information he's not a scam he's not a

grifter he's a person who provides Great

Value and if people want to pay him more

for other things things that he does or

products he has or things that he

pitches they have that prerogative but

ultimately what's going to happen with Y

because there are people who have a lot

of money tied up in yata and it's

unfortunate we'll also say it's also

quite unfortunate that you have people

like clear value tax basically he made a

video a couple months ago I I didn't

really want to talk about it because you

know I think clear value PX puts in good

work as well

but it took a screenshot of Graham's

Channel with real estate videos and the

classic sort of oh real estate's

crashing face and

thumbnail but the real and they made fun

of it but the reality

is in every single video when you watch

Graham's videos he's very consistent buy

the S&P get into real estate yes her

price is going to fluctuate of course

but here's how you can minimize your

risk he's not a gambler he's a very

conservative investor he's a

conservative business person and I know

that the hate he getting online right

now is misplaced because it's not his

fault and there's nothing he could have

done about y to prevent this from

happening it's there's literally nothing

he could have done it's not his fault at

all uh and it's it's just sad the

pressure that he's getting because

really what it's doing is it's removing

him from wanting to post content which

removes value that other people could be

getting like maybe he was going to post

a video breaking down the latest crypto

bill or whatever and people could learn

from it and learn how to make money you

know you could learn from people's

mistakes and their fail uh and their

successes I do that all the time I feel

like I get almost financially naked with

people and my you know course member

live streams or my trade alerts or

whatever like look here's how I screwed

up here's what I did wrong damn here's

what I did right here's how maybe we can

do it

again but I feel bad for him but anyway

yeah clear value tax I mean I may as

well since I brought it up I wrote down

a couple notes from his video because

some of the stuff he said was just wrong

uh I'll bring it up first of all even

though they were both going back and

forth at each other jokingly I guess

Clear Valley attx wanted to go back and

insult Graham over that I thought that

was a little out of place because they

were both poking fun of each other

during the co days and it was it was

like good fun uh like I remember Graham

put on a shirt and kind of like tap

papers on the desk uh because that's

what clear value tax always used to do

and he was just being respectful out of

him if anything it was a great shout out

for Clear value people liked it back

then uh but I guess that turned into an

insult I don't know why there's like

been so much anger I I think maybe it's

just like politically there's so much

anger in the world these days it's

really quite sad uh but anyway um

another thing that I saw clear value

mention as he said that oh institutions

are buying more houses than ever well

the reality is as of late 2022 just 3%

of homes are owned by institutions and

when you look at the number of

Institutions buying homes today

they buy less than 1% of homes the

biggest competitors to people buying

homes are scam companies like open door

I legitimately think that's a poorly run

business and I'll make another video on

Open Door uh and uh mom and pop Real

Estate Investors who own between one to

nine properties so in other words when

you get to buying your first rental

property you are about 25% of people

competing for homes it's not

institutions yes they are buying homes

but they don't represent the majority of

people competing to buy homes it's just

diluted from reality the statistics

completely disagree with that so we can

you know take the emotional route which

this is what people like to do right

like if you're 16 or whatever it's like

oh haha Graham got caught uh you know

promoting a of bank and now people can't

get their money out Graham's a scam like

that's a fun funny haha thing to catch

on and and to like promote but it's

deluded from the real it of quite

frankly any company that helps promote a

startup any startup can fail in fact 80%

of new businesses fail within 2 to 5

years like it's going to happen

businesses fail but what's interesting

is what's happening at Y is it's not

even their business that's failing it's

one of their intermediaries that's

failing which means it's not where

people's money is that's at risk it's

not that's FDIC insured at the

underlying Bank the problem is in

between yada uh and the underlying

Bank you can't process ledgers

appropriately to figure out exactly

where everybody's money is so what's

going to happen is auditing firms will

get involved and make sure that

everybody gets access to their money in

uh uh in in a timely manner I don't know

when that will be but it will happen and

it's unfortunate that people's money is

locked up this is why I personally bank

at JP

Morgan because before the banking crisis

I actually made the Titanic the market

is about to collapse video and I talked

about bank failures in that video and so

when we initially opened house hack we

had about $25 million sitting in a local

community bank and at the end of 2022 I

said this is way too risky having all of

this money sitting exposed after we

raised money in September of 22 I'm

going to move it all to a bank I know

that's too big to fail JB Morgan so

every single dime that we have is either

in real estate or at JP Morgan because I

know that if there's a failure at JP

Morgan the entire country will collapse

and so guess what won't happen a failure

of JP Morgan in my opinion now watch JP

Morgan ends up failing but then the

Federal Reserve will just print me you

know some fed notes and make up for it

instantaneously unfortunately when you

bank with a startup not a bank which

they've always said we are not a bank

you might end up running into issues so

if people have all of their money in y

that sucks and I feel horrible for them

I'm confident they're going to get their

money back because their money is in an

FDIC insured bank and on the underlying

level but unfortunately now people are

going to be out of that money for

potentially 3 to 6 months and yat bank

will probably collapse it will probably

fail the people because ass soon as

people can get their money out they'll

never want that risk again they'll take

their money out and Y will collapse

which is terrible which means now Graham

loses his investment in the business as

well which maybe you know what

rightfully so I invested

$420,000 into block five guess how much

of that I got back zero it's gone it

evaporated whereas people in FTX who

have deposits in there even though every

single person in the creater Community I

know warning videos to get out like in

the weeks before it went to

collapse they'll get all of their money

back so I'm making this video because

not because it's popular and it's

probably going to get hate but because

it's the right thing to do Graham is not

a bad person he's not a scam I support

Graham I'll never not support

him I I just feel very bad for yes the

people who right now are stuck

but also for Gram hey so I'm just

editing this video and I thought I would

add in that if you bank with Y quote

unquote bank with them what I would do

is look at your latest yta statement and

see where your cash actually is I

believe it's at evolve Bank wherever the

actual underlying money is I would make

a claim with that company so if your

cash is at evolve you should be entitled

to your Capital through evolve that's

what I would take up as soon as possible

if evolve ises you I would immediately

contact FDC that's the federal

depositary Insurance trust uh

Corporation rather uh and um I would put

a claim in with them immediately and I

would State my money is inaccessible at

evolv bank I don't care what the reason

is I want my money give me my money and

I would suspect that once FDIC gets in

involved and evolved doesn't want to

lose their FDIC

licensing because then then you're I

mean technically you could be a bank I

suppose without FDIC but I don't even

know if you're allowed to call yourself

a bank in that case just holding

people's cash without that's bad uh but

um I would suspect once FDIC sends a

little letter to evolve they're going to

start paying out y customers on the

behalf of Y again I think y will fail

which is unfortun

but I think there's a way to get your

money sooner than than you might think

uh of course it's also possible that uh

Y is able to resolve this intermediary

issue soon if the intermediary is going

bankrupt bankruptcy could take years I

wouldn't wait for that I would contact

either the underlying Bank

evolve FDIC or

both good luck